BNP Paribas ‘Testing’ Bitcoin For Currency Funds

Michael Moore joined TechWeek Europe in January 2014 as a trainee before graduating to Reporter later that year. He covers a wide range of topics, including but not limited to mobile devices, wearable tech, the Internet of Things, and financial technology.

BNP Paribas, one of Europe’s largest banks, is reportedly beta testing the use of Bitcoin for currency funds in a vote of confidence for the troubled cryptocurrency which has been the subject of negative publicity recently.

“We are looking at blockchain technology and how it can be applied to post trade processes to make things faster and potentially cheaper but it’s all very much projects and it’s all in testing,” a BNP Paribas told IBTimes.“It’s nothing live.”

In testing

Despite several past run-ins with law enforcement services in the past, due to its use as a backbone for institutions such as the Silk Road, cryptocurrencies such as Bitcoin appear to once again be finding favour with financial industries as they look for a more digital-friendly approach.

Last month, Barclays announced it would be supporting research into using Bitcoin in the UK as part of a major investment in burgeoning technology firms.

The bank has agreed a proof of concept (PoC) deal with Safello to explore how blockchain technologies could be harnessed in the financial services sector, marking the first time that a UK bank has announced such a deal with a Bitcoin company.

Earlier this year, it was also reported that the NASDAQ stock exchange was also evaluating blockchain, the underlying technology behind Bitcoin, in order to see if it could be used in trading of shares in private companies.

Prestigious investment bank Goldman Sachs has also invested in bitcoin consumer-services company Circle Internet Financialas part of a $50m funding round back in May.